TL;DR
To find growing companies, annual revenue growth (YoY) analysis is conducted; for instance, Turkish Airlines increased its revenue by 40% to 70 billion TL in 2022. Revenue growth reflects increases in market share and customer numbers.
9 min readHow to calculate year-over-year revenue growth. Organic vs inorganic growth, screening for growth on BIST.
Revenue Growth Analysis
This metric is a key component of fundamental analysis. It should be evaluated alongside the P/E ratio and P/B ratio.
How to Calculate
See our financial statement analysis guide for calculation details. Stock valuation methods use this metric alongside other measures.
Application on BIST
Filter by this metric in Borsafolio's stock screener. Each stock detail page provides quarterly financials and comparative metrics.
Screen BIST stocks by financial metrics.
Open Stock Screener →Related articles: Fundamental Analysis Guide, P/E Ratio, P/B Ratio, Financial Statements.
Frequently Asked Questions
What is revenue growth?
Revenue growth refers to the increase in a company's total revenue over a specific period compared to the previous period. This growth is a critical indicator for assessing the company's financial health and competitive strength in the market.
How is annual percentage change (YoY) calculated?
Annual percentage change is calculated by subtracting the previous year's revenue from this year's revenue, dividing the result by the previous year's revenue, and multiplying by 100. For example, if a company's revenue was 10 billion TL in 2022 and 12 billion TL in 2023, the annual percentage change would be 20%.
What are growth stocks?
Growth stocks are shares of companies believed to have high potential for future growth. Companies like Turkish Airlines and Aselsan stand out with high annual revenue growth rates.
What are the differences between growth and value stocks?
Growth stocks are shares of companies expected to grow rapidly; value stocks are typically undervalued companies with lower price-to-earnings ratios. Investors tend to take higher risks with growth stocks while favoring more solidly based, lower-priced stocks with value investing.
What indicators are used in revenue growth analysis?
Revenue growth analysis includes indicators such as gross profit margin and net profit margin. These indicators provide important data for understanding the profitability structure of companies and evaluating their growth strategies.
This content does not constitute investment advice. Past performance is not a guarantee of future results. Make your investment decisions based on your own risk profile.
